CHIPS and Science Act could give the US economony a much-needed boost
There are major changes afoot for the US semi-conductor sector as President Biden has ratified the CHIPS and Science Act into law. This act is to give the sector over $260 billion in order to reinvigorate the development of semi-conductors in the USA.
$52 billion is to go into research and development alone in order to support chip makers like Intel and Qualcomm in ending the supply shortages that have been prevalent.
$39 billion is to go into developing more manufacturing hubs and other structures to produce chips en masse as the market now demands.
$40 billion is going to a partnership with Micron, which will not only create over 40,000 new jobs for the sector but will also ensure chip development from less than 2% to over 10% over the next 10 years.
Source: NASA
There are major incentives for businesses to consider putting time and energy into these industries with a 25% tax relief offered for those who meet the development requirements.
This financial injection will help already established chipmakers like Intel and Qualcomm the most, as they recently announced a partnership with GlobalFoundaries to expand chip production by 50% in the next 5 years.
Overall, this is good news for both companies and consumers, and smartphones are not the only area affected by chip shortages. For those, like me, who are still waiting for a PS5 to appear in the wild, it means that maybe sooner rather than later we will be able to get the chips into the hands of the people sooner rather than later.